- SWFX market sentiment is 68% bullish today
- Pending orders in the 100-pip range are 55% to buy
- US Mid-term elections take control
The rate did not decline on Monday, as it was expected. Instead, the currency exchange rate has slightly surged and resumed trading sideways. Main reason for trading sideways was the fact that the financial markets were expecting the results of the US Congressional Elections.
The European Single Currency depreciated against the US Dollar, following the US Unemployment Rate data release on Friday at 12:30 GMT. The EUR/USD exchange currency rate lost 17 pips or 0.15% during a minute, right after the release. Afterwards, the European Single Currency continued trading at the 1.1415 area against the US Dollar.
The Bureau of Labor Statistics released US Unemployment Rate that came out in line with expectations of 3.7%. In addition, the Non-Farm Employment Change together with the Average Hourly Earnings m/m data release came out also at 12:30 GMT.
The Bureau of Labor Statistics noted: "Total nonfarm payroll employment rose by 250,000 in October, and the unemployment rate was unchanged at 3.7 percent. Job gains occurred in health care, in manufacturing, in construction, and in transportation and warehousing".
Quiet week for macroeconomic data releases
All of this week's events, which are worth mentioning, are described below
On Tuesday, the US Congressional Elections are taking place. They will impact all of the financial markets through the US Dollar.
On Wednesday, some traders will speculate on the publication of the weekly Crude Oil Inventories at 15:30 GMT. The event will be covered on a live webinar by Dukascopy Analytics.
In addition, on the same day the New Zealand's central bank will announce their Official Cash Rate at 20:00 GMT
On Thursday, the US Federal Reserve's Federal Open Markets Committee will publish their statement and announce the Federal Funds Rate at 19:00 GMT. The event will also be covered on a live webinar by Dukascopy Analytics.
On Friday, at 09:30 GMT the UK GDP and Manufacturing Production data sets will be published. Afterwards, at 13:30 GMT US Producers Price Index will be out. Both events will be covered by Dukascopy Analytics.
EUR/USD daily review
In regards to the near-term future, most likely, the currency exchange rate will trade sideways to stay in the range between the monthly pivot point at the 1.1413 and the weekly pivot point at the 1.1382.However, today's US Congressional Elections may affect the rate to break the resistance of the monthly PP at 1.1413 or the support of the weekly PP at 1.1382.
Hourly Chart
On the daily chart the upper boundary of a junior descending pattern is still holding the EUR/USD from surging.
Although, the trend line is expected to be broken, as the rate had already reached the lower trend line of a dominant pattern. Namely, in theory the junior pattern should give up, as a new one would show a new move in the borders of the larger pattern.
Daily chart
On Tuesday, 68% of traders were long on EUR/USD. Previously 62% of traders were holding long positions.
Meanwhile, traders had their pending orders set up mostly to sell the EUR/USD, as 55% of all trader set up orders were set to sell the pair.
In general, it could be observed that traders were expecting a surge of the EUR/USD that would be caused by the results of the US Congressional elections. Although, the sell orders dominated, indicating that all of the long traders had set up stop losses and take profits for their positions.